Why Should the Tax Laws to Encourage Saving Be Reformed

question 78

Multiple Choice

Why should the tax laws to encourage saving be reformed?

• A)because saving is a key determinant of long-run prosperity
• B)to increase taxes on capital gain
• C)because higher-income households are taxed too much
• D)because economic theory clearly predicts that a higher rate of return encourages saving

---

Definitions:

Quantity Supplied

The volume of a commodity or service suppliers are prepared and able to market at a certain price.

Supply

The total amount of a good or service that is available for purchase at various price levels during a specified time period.

Demand and Supply

Demand and Supply are fundamental economic concepts representing the desire and ability to purchase goods and services and the amount of goods and services available for sale, respectively.

Market Supply

The total of what all producers are willing and able to sell at a given price over a specified time period.